- SIC Insurance Turns Cash Flow Positive as Profit Rises 42.56% in First Half of 2026
SIC Insurance PLC recorded a strong improvement in its first-half 2026 performance, with profit after tax rising 42.56% to GH¢31.35 million as higher insurance revenue, stronger investment income and improved cash generation helped deepen the insurer’s earnings recovery.
The state-backed non-life insurer reported insurance revenue of GH¢323.21 million for the six months ended June 30, 2026, up 13.98% from GH¢283.57 million in the corresponding period of 2025.
Profit before tax increased by an equally strong 42.56% to GH¢44.79 million, from GH¢31.42 million a year earlier, while earnings per share improved to GH¢0.1602 from GH¢0.1124.
The results show that SIC’s improved bottom line was supported not only by growth in insurance revenue but by stronger earnings across several parts of the business.
Insurance service expenses declined to GH¢85.20 million from GH¢93.89 million, allowing insurance service results before reinsurance contracts held to climb to GH¢238.02 million, from GH¢189.68 million.
After accounting for net expenses from reinsurance contracts held, SIC recorded an insurance service result of GH¢121.24 million, representing a 12.91% increase from GH¢107.38 million in the first half of 2025.
The improvement indicates that the core underwriting operation remained profitable even as reinsurance costs increased.
Net expenses from reinsurance contracts held rose to GH¢116.78 million from GH¢82.30 million, highlighting the continuing cost of transferring part of the insurer’s risk exposure to reinsurers.
SIC’s financial results from insurance contracts were also weaker, with net insurance financial expenses increasing to GH¢1.79 million from GH¢0.57 million.
Even so, the insurer’s net insurance result rose to GH¢119.45 million, from GH¢106.81 million.
SIC earned GH¢20.61 million from investments during the period, up 46.31% from GH¢14.09 million a year earlier.
That helped lift combined net insurance and investment results to GH¢140.06 million, compared with GH¢120.30 million in the same period of 2025.
For an insurer, investment income is an important secondary earnings engine because premiums collected before claims are settled can be invested in financial assets.
The stronger investment contribution therefore gives SIC an additional layer of earnings support beyond underwriting.
Other income more than doubled to GH¢16.73 million from GH¢7.74 million, an increase of 116.24%.
However, operating expenses also rose materially, increasing 15.92% to GH¢112.00 million from GH¢96.62 million.
The rise in costs means the company will still have to manage expenditure carefully if it wants the faster earnings growth seen in the first half to remain sustainable.
The improvement in profitability was also reflected in SIC’s margins.
Net profit margin increased to 9.70% from 7.76%, while return on shareholders’ funds strengthened to 3.63% from 3.14%.
Insurance service margin eased marginally to 37.51% from 37.87%, suggesting that while overall profitability improved, the core insurance margin remained broadly stable rather than expanding significantly.
The stronger income statement was accompanied by a sizeable expansion in the balance sheet.
Total assets rose 16.00% to GH¢1.34 billion, from GH¢1.15 billion at the end of June 2025.
Shareholders’ funds increased by 23.10% to GH¢863.35 million, from GH¢701.32 million, while retained earnings rose to GH¢220.30 million from GH¢154.87 million.
The fair value reserve also increased substantially to GH¢281.15 million from GH¢181.75 million.
Current assets increased to GH¢435.51 million from GH¢323.29 million, driven largely by growth in investments held at amortised cost.
Current investments at amortised cost nearly doubled to GH¢286.23 million from GH¢150.09 million, while cash and bank balances increased to GH¢106.61 million from GH¢88.57 million.
The insurer’s current ratio improved to 1.3529 from 0.9656, indicating that current assets now more comfortably exceed current liabilities than they did a year earlier.
Perhaps the most striking change in the results came from operating cash flow.
SIC generated GH¢97.37 million in net cash from operating activities during the first half of 2026, compared with a small net operating cash outflow of about GH¢0.47 million in the corresponding period of 2025.
The turnaround was supported by movements in insurance contract liabilities, reinsurance contract assets and receivables, even as changes in payables and deferred revenue absorbed cash.
Cash and cash equivalents, which the company presents as cash and bank balances plus current investments at amortised cost, increased to GH¢392.84 million at June 30, 2026, from GH¢238.66 million a year earlier a rise of 64.60%.
The company recorded a net increase of GH¢109.73 million in cash and cash equivalents during the period, compared with just GH¢10.81 million in the first half of 2025.
That cash-flow improvement is significant because accounting profit alone does not determine the strength of an insurer.
A company may report higher earnings while struggling to convert those profits into cash. SIC’s first-half numbers point in the opposite direction: earnings improved alongside a substantial strengthening in operating cash generation and liquid financial assets.
Liabilities nevertheless increased. Total liabilities rose to GH¢472.65 million from GH¢450.40 million, while insurance contract liabilities for incurred claims increased to GH¢88.28 million from GH¢68.20 million.
Liabilities for remaining coverage also increased to GH¢190.37 million from GH¢176.57 million. Trade and other payables, however, declined to GH¢40.59 million from GH¢61.36 million.
The company did not declare or pay a dividend during the period, according to the directors’ report.
SIC’s retained earnings before statutory reserve appropriation stood at GH¢229.998 million after adding the GH¢31.35 million half-year profit to the opening retained earnings position. A GH¢9.70 million transfer to statutory reserves left GH¢220.30 million carried forward.
Revenue is expanding, underwriting remains profitable, investment income has risen strongly, cash generation has improved substantially and the balance sheet is larger and more liquid.
But the numbers also show areas requiring continued attention.
Reinsurance expenses have increased materially, operating expenses are growing faster than insurance revenue, and the insurance service margin has edged slightly lower.
Those pressures have not prevented earnings from rising sharply, but they could become important determinants of whether the first-half momentum can be sustained through the remainder of 2026.
For now, SIC Insurance’s half-year results point to more than a simple increase in reported profit.
The insurer has combined a 42.56% rise in net earnings with stronger investment returns, a 23.10% increase in shareholders’ funds, a markedly improved current ratio and a turnaround from negative operating cash flow to nearly GH¢100 million in positive cash generation.
The second half will determine whether that improvement represents a durable shift in earnings quality or merely a strong six-month performance.
But on the evidence of the June numbers, SIC enters the remainder of 2026 from a considerably stronger financial position than it did a year earlier.
